Quorum Reports Third Quarter 2021 and Current Year Financial Results

  • Record total income of $ 9.2 million on a growth rate of 14%
  • $ 6.6 million in recurring SaaS revenue
  • $ 2.4 million in recurring service revenues
  • Adjusted EBITDA1 16% margin

CALGARY, Alberta, November 24, 2021 (GLOBE NEWSWIRE) – Quorum Information Technologies Inc. (QIS: TSXV) (QuorumInformationSystems.com), a SaaS software and services company that provides essential software that auto dealers rely on for their operations across North America, today announced its financial results for the third quarter of 2021 and for the third quarter ending September 30, 2021. Financial references are expressed. in Canadian dollars, unless otherwise indicated. Please refer to the MD&A and financial statements published on SEDAR regarding non-IFRS risk factors and measures.

“We are pleased to report record total revenue and overall revenue growth for this quarter, which has been well balanced between adding new roofs and cross-selling new software and services. to current customers, ”said CEO Maury Marks. “With ongoing supply chain challenges, emerging online sales channel opportunities and increasing competition, our auto dealer customers need our software to protect and grow their business while maximizing their profits. We are encouraged by the current market conditions and the total addressable market available for Quorum Information Technologies solutions.

Consolidated results for the third quarter of 2021 and year-to-date

Q3 2021 % Switch Q3 2020 Year-to-date 2021 % Switch Year-to-date 2020
Total income $ 9 201 600 14% $ 8,085,348 $ 26 830 594 19% $ 22,539,580
Recurring income $ 8 976 508 15% $ 7 778 853 $ 26,079,167 21% $ 21 631 691
Gross margin $ 4,307,880 18% $ 3,659,992 $ 12,093,433 21% $ 9 973 961
Gross margin % 47 % 45 % 45 % 44 %
Total operating expenses $ 4,470,561 21% $ 3,681,373 $ 12,966,077 15% $ 11 277 639
EPS (Loss) – $ 0.002 – $ 0.005 – $ 0.010 – $ 0.019
Net loss – $ 143 930 60% – $ 358,296 – $ 696 103 50% – $ 1,383,568
Adjusted EBTIDA $ 1,451,712 -1% $ 1,464,650 $ 3,846,083 13% $ 3,410,823
Adjusted cash income 2 $ 726,303 -24% $ 961 756 $ 1,766,037 6% $ 1 661 315

Third Quarter 2021 Financial and Business Highlights

  • Total revenue increased 14% to $ 9.2 million in the third quarter of 2021, from $ 8.1 million in the third quarter of 2020.
  • SaaS revenue increased 11% to $ 6.6 million in the third quarter of 2021, from $ 5.9 million in the third quarter of 2020.
  • Recurring Services (BDC) revenue increased 30% to $ 2.4 million in the third quarter of 2021, compared to $ 1.9 million in the third quarter of 2020. The strength in this category is due to news functionality of the solution and a strategic partnership with AutoCanada.
  • Recurring revenue represented 97% of total revenue for the quarter, compared to 96% in the third quarter of last year.
  • Total annual recurring revenue (ARR) from SaaS of $ 26.2 million as of September 30, 2021.
  • Total annual recurring service revenue (BDC) of $ 9.7 million as of September 30, 2021.
  • Gross margin increased to $ 4.3 million and 47% of total revenue in the third quarter of 2021, from $ 3.7 million and 45% of total revenue in the third quarter of 2020. Margin Gross increased 18% from the third quarter of last year, growing at a faster rate than the revenue growth that is the result of the company’s scaling.
  • Adjusted EBITDA margin was 16%, down from 18% reported in the previous third quarter.
  • Including cash of $ 7.5 million, total net working capital as at September 30, 2021 decreased to $ 7.6 million from $ 9.1 million as at December 31, 2020, a decrease of $ 1.5 million. $ 1.5 million prepayment of principal and interest on its BDC Principal Loan Facility in April 2021.
  • The operational KPIs based on SaaS are as follows:
Q3 2021 Q2 2021 Q3 2020 year after year
Growth
Sequential
Growth
Rooftop Dealer Account – Canada 904 898 882 2% 1%
Number of dealer roofs – United States 128 127 129
Number of roof dealers – Total2 1,032 1,025 1,011 2% 1%
MRRPU $ 2,116 $ 2,091 $ 1,950 9% 1%

Monthly Recurring Revenue Per Unit (MRRPU) implies that at the end of Q3 2021, each dealership (Dealer Rooftop) represents approximately $ 25.4,000 of SaaS ARR.

Conference call details

Maury Marks, President and CEO and Marilyn Bown, CFO will present the quarterly results for the third quarter of 2021 during a conference call with simultaneous audio webcast, scheduled to:

The investor presentation of the third quarter 2021 quarterly results, a replay of the conference call and transcripts of the conference call will also be available at www.QuorumInformationSystems.com.

About Quorum Information Systems

Quorum is a North American company focused on the development, commercialization, implementation and support of its automotive dealer software and services portfolio, which includes:

  • XSellerator, a dealership management system (DMS) that automates, integrates and streamlines key processes between departments in a dealership, with a focus on revenue generation and customer satisfaction.
  • DealerMine CRM, a sales and service customer relationship management (CRM) system and a set of business development center services that generate revenue in the critical sales and service departments of a dealership.
  • Autovance, a modern retail platform that helps dealers attract more business through digital retail, improve in-store profits and close rates through its desktop tool, and maximize their efficiency and CSI thanks to Autovance’s F&I menu solution.
  • Advantage, a complete showroom system for independent dealers and a management system that also includes in-house rental, inventory management and accounting.

Quorum Information Technologies Inc. is listed on the Toronto Venture Stock Exchange (TSX-V) under the symbol QIS.

For more information, please visit www.QuorumInformationSystems.com.

Contacts Quorum Information Technologies Inc .:

Maury Marques

President and CEO

403-777-0036

[email protected]

Marilyn bown

Financial director

403-777-0036

[email protected]

Investor Relations Contact

Ron Shuttleworth

Partner

Oak Hill Financial

647-500-7371

[email protected]

Forward-looking information

This press release may contain certain forward-looking statements and information (“forward-looking information”) within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “plan”, “intend”, “objective”, “ongoing”, “in progress” , “estimate”, “expect”, “may”, “will”, “project”, “should” or similar words suggesting future results. Quorum believes that the expectations reflected in such forward-looking information are reasonable, but no assurance can be given that such expectations will prove to be correct and such forward-looking information should not be unduly relied upon.

Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties, some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Quorum’s actual performance and financial results in future periods to differ materially from any projection of future performance or results expressed or implied by such information. prospective.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed this release and accepts no responsibility for the adequacy or adequacy of this release. accuracy of this release.

_____________________________

1 Adjusted EBITDA (non-GAAP) – Net income (loss) before interest and financing costs, taxes, depreciation, amortization, stock-based compensation, foreign exchange gains and losses, non-recurring expenses related to acquisitions and restructuring.
2 Adjusted cash income (non-GAAP) – Adjusted EBITDA less capitalized salaries and overheads.
2 The number of rooftop dealers – The total for the third quarter of 2020 has been adjusted to correct the number of rooftop dealers from the previous period – Canada. Dealer Roof Count – Total and MRRPU were previously reported as: Q3 2020 total roof count of 1,045 and MRRPU of $ 1,886.

PDF available: http://ml.globenewswire.com/Resource/Download/648c4003-a257-44de-a2ad-69b88e7c3ebf


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